| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 8 | 119.6x | 17.4x | Bottom tier | |
Growth | 90 | 17.8% | 7.1% | Top tier | |
Quality | 88 | 15.9% | 4.5% | Top tier | |
Safety | 60 | 2.6x | 2.6x | Around median | |
Capital Return | 47 | 0.00% | 0.18% | Around median | |
Momentum | 98 | 85.7% | 1.3% | Top tier | |
Sentiment | 43 | 9 | 3 | Around median |
10-year US Treasury yield 5.31% as of 2026-10-05. Estimates computed from company data and analyst targets, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Semtech Corporation operates in semiconductors and connectivity systems, generating revenue from three main end markets: infrastructure, industrial, and high-end consumer. Its portfolio includes FiberEdge and CopperEdge data center solutions and photonic components, the LoRa platform for low-power connectivity, AirLink devices for mission-critical communications, as well as TVS circuit protection and PerSe sensing solutions. In fiscal Q2 2027, industrial sales were $179 million, infrastructure sales were $124 million, and high-end consumer sales were $39 million, representing approximately 52%, 36%, and 11% of revenue, respectively.
In fiscal Q2 2027, ended July 26, 2026, Semtech reported record revenue of $342 million, up 17% sequentially and 33% year over year, exceeding the high end of its guidance. Adjusted diluted earnings per share were $0.71, up 39% sequentially and 73% year over year, while the adjusted gross margin increased to 54.5% from 53% in the previous quarter. The company also reported adjusted operating income of $84 million and an adjusted operating margin of 24.4%, while the adjusted earnings before interest, taxes, depreciation, and amortization margin was 26.6%.
The latest available EDGAR statements for fiscal Q1 2027 showed revenue of $291.0 million, gross profit of $151.5 million, net income of $26.6 million, and earnings per share of $0.27. In fiscal Q2 2027, operating cash flow was $69 million and free cash flow was $61 million, compared with $204 million in cash and cash equivalents and $503 million in principal debt at the end of the quarter. However, trailing-twelve-month net income in fiscal 2027 remained negative at $33.2 million, illustrating the gap between adjusted operating improvement and cumulative accounting profitability.
The average analyst price target is $210.36, with a Buy consensus and a wide target range between $155 and $300; the average is approximately 18.6% above the 52-week range high of $177.35. In contrast, no positive price-to-earnings ratio is available because of the trailing-twelve-month net loss in fiscal 2027, so the valuation depends heavily on the realization of data center and LoRa growth, the closing of the cellular modules business sale, and the conversion of adjusted earnings into sustainable accounting profitability.
Figures in the text are as of 2026-08-29; the live price is shown at the top of the page.
Semtech's revenue increased to $342 million in fiscal Q2 2027, representing year-over-year growth of 33%. Data centers were the fastest-growing driver, with revenue reaching $100 million and rising 91% year over year, supported by 800-gig and 1.6T FiberEdge and CopperEdge. LoRa sales also increased 58% year over year to a record $58 million, while industrial sales overall reported year-over-year growth of 25%.
Management expects revenue of $410 million, plus or minus $5 million, and year-over-year growth of 54% at the midpoint. It expects an adjusted gross margin of 58.3% and adjusted diluted earnings per share of $1.05, plus or minus $0.03. It also expects data center revenue to grow approximately 45% sequentially and LoRa to grow approximately 15% sequentially.
FiberEdge serves optical communications, while CopperEdge provides linear equalization solutions for copper links in data centers. In fiscal Q2 2027, the two products at 1.6T helped increase the adjusted semiconductor products margin to 62.8%. Management expects 1.6T FiberEdge and CopperEdge products to exceed half of data center revenue in Q3 and the share of 1.6T FiberEdge to exceed 50% by the end of fiscal 2027.
Automated analysis for informational purposes only — not investment advice.
LoRa revenue reached a record $58 million in fiscal Q2 2027, up 31% sequentially and 58% year over year. The growth strategy combines LoRaWAN for industrial and commercial applications, LoRa Plus for smart homes and security, and Amazon Sidewalk for consumer applications. LoRa Plus represented approximately 20% to 25% of the LoRa mix in Q2, while management expects year-over-year LoRa revenue growth of approximately 65% in Q3.
Semtech signed a definitive agreement to sell the cellular modules business and expected to close the transaction in fiscal Q4 2027. The adjusted gross margin was 54.5% in Q2 but reached 59.7% when excluding the business held for sale. For Q3, management estimated the margin at 58.3% on a consolidated basis and 63.9% excluding that business, with the transaction expected to be neutral to adjusted earnings per share.
Management explained that secured production capacity may not be sufficient for the second half of fiscal 2028, requiring additional test equipment, manufacturing partners, and capacity. Trailing-twelve-month net income in fiscal 2027 also remained negative at $33.2 million, despite strong adjusted earnings and cash flows in Q2. In addition, high-end consumer sales declined 5% year over year to $39 million, while more than 500 basis points of the expected structural margin improvement depends on completing the sale of the cellular modules business.
